Climate policy uncertainty and economic growth, a moderating role of crude oil price changes: evidence from the Asian economies
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 21 October 2024
Abstract
Purpose
This study aims to inspect the impact of US climate policy uncertainty (CPU) on the economic growth of Asian countries with the moderating role of crude oil price (COP) changes.
Design/methodology/approach
The Im-Pesaran Sin and Fisher-type tests are used for stationarity check, while Kao and Pedroni tests are used for cointegration analysis. The Hausman test is applied for model selection, where pooled mean group autoregressive distributed lag (PMG/ARDL) has been selected and applied. Besides, the fully modified ordinary least squares is also used for robustness analysis. Additionally, the literature review and descriptive statistics have been used.
Findings
The main findings disclosed that US CPU negatively impacted the economic growth of Asian economies with high significance in the long run whereas insignificant in the short run. The results further concluded that COP positively affected economic growth both in the short and long run. Furthermore, the results also revealed that COP significantly and positively moderates the relationship between CPU and COP in the long and short run.
Originality/value
The study is the first of its kind to examine the impact of the US CPU on the economic growth of Asian economies. Second, it further revealed the moderating role of COP between US CPU and economic growth. Third, a large panel of data from Asian countries has been considered. Fourth, the study adds to the current literature by using the PMG/ARDL model to determine the impact of US CPU on economic growth. Additionally, this study focuses on the US CPU because it is a developed country playing a significant role in energy and climate issues, and has been very uncertain.
Keywords
Acknowledgements
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Funding: The work was supported by National Natural Science Foundation of China (72172129), The National Social Science Fund of China, Ministry of Education, Humanities and social science projects (21YJA63003), Scientific and technological project in Sichuan Province (2020JDR0109), Fujian Natural Science Foundation Project (2022J01380), Foundation Fujian Social Science Foundation Project (FJ2022B088), Sichuan Wine Development Research Center (CJZ21-03, CJY21 07).
Citation
Ullah, S., Yushi, J. and Miao, M. (2024), "Climate policy uncertainty and economic growth, a moderating role of crude oil price changes: evidence from the Asian economies", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-12-2023-0024
Publisher
:Emerald Publishing Limited
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